Chainlink risks dropping below the $20 region after the cryptocurrency recorded a more than 30% increase in value last week
The cryptocurrency market is in a consolidation period after last week’s rally. Bitcoin is hovering around the $40,000 mark while Ether has finally topped $2,500 and looks set to reach the $2,600 mark soon.
Chainlink (LINK) was one of the top performers last week, with its value up by over 30% in the past seven days. However, it risks dropping below the $20 region as the bearish sentiment returns to the market.
The medium and long-term outlook for the market remain positive. In the short term though the prices might dip if the bearish sentiment continues.
LINK price outlook
The LINK/USD 4-hour chart indicates that Chainlink is in a bullish mode despite the recent decline in price. This is due to LINK’s performance over the past few days. LINK is currently down by 3.5% over the past 24 hours, down from its weekly and monthly high price of $23.90.
At the moment, LINK is trading at $22.60, and if the current market trend continues, it could lose some of its gains and drop towards the $20 level. The critical support level at $18 should be able to limit further downward movement unless there is an extended market sell-off.
LINK/USD 4-hour chart. Source: Coinalyze
The MACD line is in the bullish zone, and LINK is clearly above its 4-hour 100 simple moving average ($17.69). While the RSI is in the neutral zone, it is above 50, which all indicates that the bullish momentum is still present in the market.
If the bulls take advantage of this momentum, LINK could resume its rally and surpass the 30-day high of $23.90 and head towards the $25 level in no time. In the event of an extended rally from the broader cryptocurrency market, LINK could look to reach the $30 mark for the first time since the start of June.